Performance Management Gone Wrong

By Rich Wellins, Ph.D.

Over the holidays, I was scanning the work advice column in our local newspaper. An employee was asking for advice on how to handle a derailed performance appraisal discussion with her boss. As the story goes, her boss pointed out over a lunch-time appraisal that she was often disruptive and overly critical.  She asked her boss for an example, and he blew a gasket. If she did not improve her behavior (of which he had no good examples) she may risk getting fired.

Perhaps the story is an extreme, but examples of disastrous appraisal discussions are plentiful.  Performance management is one of the most misused management processes. The shame is that if used effectively, it can be one of the most powerful.

In my opinion things have gotten worse, not better, over the past 5 to 6 years with the advent of performance management software. While these programs may help with efficiency, consistency—and sometimes effectiveness—they account for less than 20 percent of the success of the process. Nick Graber, a former HR associate at Kodak once told me that you could do a very effective appraisal on the back of a napkin. And, a very ineffective one on a three page form. His advice: “It’s the conversation that makes the difference.”

So let’s go back to the basics for a few minutes by asking yourself:

• If a stranger was to walk up to a group of employees in your parking lot, what would they say about the most recent performance appraisal? Better yet, what would you say?
• Do employees see a connection between what they are being asked to do and how it ties to the success of the organization?
• Is your performance management process executed in a reasonably consistent way throughout the entire organization?
• Is there a balance between the “whats” and the “hows” (concrete, measurable goals and the competencies/skills needed to accomplish these goals)
• Is there any sense of fairness. Are better people getting better appraisals? Are they getting bigger bonuses? If there is not reasonable distribution, there is something wrong.
• Does you system celebrate success and strengths as well as development need and “weaknesses” somewhat equally?

Sad, but true, I fear most of us would not be in the 'yes' column.

Rich Wellins is senior vice president at Development Dimensions International (DDI).

Comments

[Pascalis Claudius Lotinggi]

I had observed executives conducting performance appraisal as if their subordinates did not really exist.

My experience of performance appraisal includes having witnessed instances of managers and supervisors who were not willing or ready to have a face-to-face discussion with their subordinates. They preferred to do it alone in their office.

Some of them allowed their subordinates to rate themselves first. This will help but it is not the same as having a face-to-face encounter.

I believe many managers and supervisors need training and coaching on effective communication as well as on all the important aspects of the performance appraisal process. Many need confidence boosters.